CHAPTER 3: Banking Crises 53 Financial Crises and Banking Crises 54 The Consequences of Banking Crises 59 The Causes of Banking Crises: Hypotheses 61 Evidence from before 1870 64 Evidence from 1870 to World War I 66 Evidence from the Interwar Period 74 A Durable Pattern 81

CHAPTER 4: Rescuing the Banking System: Bailouts, Lenders of Last Resort, and More Extreme Measures 83 Bailouts 86 Lenders of Last Resort 98 More Extreme Measures 104 Making the Cure Less Costly than the Disease 107

CHAPTER 9: Banking Evolution in the United States 221 The First and Second Banks of the United States, 1791-1836 222 From Chartered to Free Banking, 1837-62 229 The National Banking Era, 1863-1913 230 The Crisis of 1907 and the Founding of the Federal Reserve 243 The Great Depression 245 Summary 249